Nationwide house prices rose by 6.3% in Q3 2021 year-on-year against a year-on-year decline of 9.4% for Q2 2021 as per the Residential Real Estate Price Index (RREPI). The increase was driven by stronger consumer demand for residential properties such as townhouses and condominium units.
National Capital Region (NCR) residential property prices rose by 11.4% year-on-year during this period as an increase in prices for townhouses and condominium units offset the decline in prices for single detached or attached houses in the NCR.
Similarly, property prices in Areas Outside NCR (AONCR) increased by 4.9% year-on-year during the same period as prices for townhouses, duplex housing units, and condominium units rose enough to offset the drop in prices of single detached or attached houses.
Despite this marked year-on-year improvement, nationwide property prices increased by only 0.7% quarter-on-quarter as residential property prices in the NCR and AONCR rose by 3.7% and declined by 0.4% respectively.
As per a press release by the Bangko Sentral ng Pilipinas (BSP), these results run in line with the outcome of the Q3 2021 Consumer Expectations Survey (CES) which showed that more consumers opted to buy real estate properties for the quarter on signs of economic recovery.
However, it remains to be seen if the current rate of increase in property prices especially in the NCR is sustainable. Recent research by UK mortgage company, Online Mortgage Advisor, found Manila to be the second worst city in Asia in terms of property affordability.